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THE GITANO GROUP REPORTS RESULTS

 NEW YORK, April 2 /PRNewswire/ -- As it previously indicated, The Gitano Group, Inc. (NYSE: GIT) today reported that it incurred a net loss of $140 million for the quarter ended Dec. 31, 1992 and, in turn, a net loss for the full 1992 fiscal year of $237.9 million. The fourth quarter operations reflected a restructuring charge of $100.5 million.
 The fourth quarter restructuring charge related to costs associated with Gitano's restructurings of its operations and debt as well as the sales and closures of several of its businesses. Of the total charge, approximately 50 percent was non-cash and covered, among other things, the write-offs of goodwill and writedowns of property, plant and equipment and other assets. The charge also established reserves for real estate consolidations, severance arrangements and other expenses associated with businesses to be exited and restructuring ongoing operations as well as expenses associated with the debt restructuring.
 Net sales for the full year and fourth quarter ended Dec. 31, 1992, were $826.5 million and $146.1 million, respectively. Net sales for the 1991 full year and fourth quarter were $780.4 million and $188.5 million, respectively.
 On Feb. 24, 1993, the date on which Gitano stated it would take a fourth quarter charge against earnings and would incur a net loss for both the quarter and full year, the company also announced that the board had named Robert E. Gregory, Jr., a respected apparel industry executive, as the new chairman and chief executive officer. At that time, Gitano also indicated that it had reached agreement with its lenders on the principal terms for an agreement to provide Gitano with a 24-month extension of its short- and long-term debt facilities through Feb. 28, 1995 and an expiration of Aug. 30, 1995, for letters of credit to be issued under its letter of credit facility. The parties are currently negotiating definitive agreements.
 Gitano is a leading supplier of branded, high quality apparel to mass merchants and discounters.
 THE GITANO GROUP, INC.
 Selected Financial Data
 (Unaudited -- Dollars in thousands, except per share data)
 Periods Ended Quarter Year
 Dec. 31 1992 1991 1992 1991
 Net sales $146,176 $188,483 $826,462 $780,444
 Cost of sales 143,418 196,195 712,946 636,317
 Gross profit 2,758 (7,712) 113,516 144,127
 As a percent 1.9 (4.1) 13.7 18.5
 Selling, general &
 administrative expenses 36,844 51,481 178,602 184,862
 Provision for doubtful
 amounts due from affiliates
 and related parties 437 -- 33,018 --
 Restructuring costs 90,324 12,200 101,552 12,200
 Total 127,605 63,681 313,172 197,062
 As a percent 87.0 33.8 33.9 25.2
 Income (loss) from opers. (124,847) (71,393) (199,656) (52,935)
 Debt restructuring costs 10,216 -- 15,701 --
 Interest expense 5,919 3,940 23,393 18,408
 Income before provision
 for income taxes (140,982) (75,333) (238,750) (71,343)
 Provision (benefit) for
 income taxes (965) (8,623) (815) (8,870)
 Net income (loss) (140,017) (66,710) (237,935) (62,473)
 Earnings per share of
 common stock $(8.75) $(4.17) $(14.88) $(3.90)
 Weighted average shares
 outstanding 15,998,717 15,998,543 15,993,771 15,998,430
 -0- 4/2/93
 /CONTACT: Robert D. Siegfried or Roy Winnick of Kekst and Company, 212-593-2655, for The Gitano Group/
 (GIT)


CO: The Gitano Group, Inc. ST: New York IN: REA SU: ERN

TS-PS -- NY008 -- 2377 04/02/93 08:34 EST
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Date:Apr 2, 1993
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